M/S Lc Infra Projects PVT. LTD. vs. The Union Of INDIA
Held
The Court held that issuing a show cause notice is mandatory before quantifying interest and attaching a bank account, as per the principles of natural justice. The action of the authorities was found to be perverse and illegal.
Facts
The petitioner, a GST registered dealer, was alleged to have wrongly availed Input Tax Credit (ITC). The authorities demanded tax and interest without issuing a show cause notice and proceeded to attach the petitioner's bank account.
Key Issues
Whether the authorities can quantify interest and attach a bank account without issuing a show cause notice as required by law. Whether Section 75(12) permits recovery without a show cause notice.
Sections Cited
Section 50, Section 73, Section 75(12)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 22ND DAY OF JULY, 2019
BEFORE
THE HON’BLE MRS.JUSTICE S.SUJATHA
WRIT PETITION No.28876 OF 2019 (T-RES)
BETWEEN:
M/s. LC Infra Projects Pvt. Ltd., (Formerly known as Laxmi Construction) Having office at: 409, Iscon Elegance, Nr. Jain Temple, Prahladnagar Cross Road, S.G. Highway, Ahmedabad – 380 015. Rep. by its Chief Financial Officer, Mr. Nitesh Avadhiya.
... Petitioner (By Sri. Ajay J. Nandalike, Advocate)
AND :
The Union of India
Ministry of Finance,
Having office at Jeevan Deep Building,
Parliament Street,
New Delhi – 110 001
Rep. by its Secretary.
The State of Karnataka
Department of Finance,
Vidhana Soudha,
Bengaluru – 560 001. Rep. by its Secretary.
The Superintendent
Office of Central G.S.T.
Madikeri Range, Block No.18/1,
Main Temple Road, Madikeri,
Kodagu District – 571 201. … Respondents (By Sri. Vikram A. Huilgol, Advocate)
This Writ Petition filed under Articles 226 and 227 of the Constitution of India, praying to call for records, issue writ holding that Section 50(1) of Central Goods a
The judgment continues below.
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